On 1 July 2019, the Australian Tax office (ATO) requires employers to report any salaries and wages paid including PAYG withholding and superannuation information on a regular basis during the year.
STP is streamline the reports as opposed to having a number of separate reporting processes. This will help you achieve efficiencies of real-time reporting and help with your compliance processes. Therefore, it is a new way for employers to report tax and super information to the ATO every time you pay your employees.
The methods of reporting are:
> Directly from STP-enabled payroll software, which will send a report to the ATO. Check that software provider offers STP-enabled products.
> Through a third party such as an accountant, who can act as an external service provider and will report on your behalf.
What was the way before Single Touch Payroll (STP)?
Previously only large businesses with 20+ employees were required to report through STP. Small employers with 19 or less employees were only required to report employee wage and superannuation to the ATO on an annual basis at the end of the financial year.